Action Construction Equipment Limited: history, ownership, mission, how it works & makes money

A Brief History of Action Construction Equipment Limited

Action Construction Equipment Limited (ACE) was established in 1995, initially focusing on manufacturing construction equipment. The company's headquarters is located in Faridabad, India. ACE made a significant entry into the market by launching its first hydraulic mobile crane, which marked the beginning of its journey in the construction machinery sector.

By 2006, ACE had evolved into a prominent player by offering a diverse range of products, including products like cranes, excavators, and material handling equipment. The company expanded its manufacturing capabilities by setting up a new plant in Ballabgarh, Haryana, which further increased its production capacity.

In 2008, ACE made a noteworthy achievement by launching the 12 Ton capacity hydraulic truck crane, expanding its footprint in the crane segment. This development positioned ACE as a leader in the Indian crane market. The company’s commitment to quality was recognized with ISO certification.

ACE's financial growth has been robust since its inception. For the fiscal year 2020-21, the company's revenue was approximately ₹1,200 Crores, with a net profit of ₹114 Crores, showcasing significant growth despite challenges posed by the pandemic.

By 2021, ACE had a comprehensive product portfolio, including cranes, material handling equipment, and irrigation machinery. This diversification strategy allowed the company to tap different market segments, further driving growth.

In 2022, ACE introduced several new products, such as the ACE 25 Ton electric crane, signaling its commitment to sustainable and efficient machinery. The company reported a revenue growth of approximately 20% year-over-year, driven by increased demand for its innovative product range.

As of September 2023, ACE has become publicly traded on the National Stock Exchange of India under the ticker symbol "ACE." The stock has seen fluctuations, with a price range of ₹250 to ₹320, depending on market conditions. The company's market capitalization stands at approximately ₹1,500 Crores.

In terms of market share, ACE commands around 15% of the Indian construction equipment market. This is a remarkable achievement, given the increased competition and economic challenges over recent years.

With consistent performance and strategic innovations, Action Construction Equipment Limited has positioned itself as a leader in the Indian construction machinery industry, focusing on quality and customer satisfaction to drive its future growth.

A Who Owns Action Construction Equipment Limited

Action Construction Equipment Limited (ACE) is a prominent player in the manufacturing of construction equipment in India. The company was incorporated in 1995 and has grown significantly over the years, driven by strategic ownership and investment. As of October 2023, the major ownership stakes in ACE are held by significant individuals and institutional investors.

The majority ownership is held by the Action Group, which plays a crucial role in the strategic direction and operational management of the company. HDFC Mutual Fund and ICICI Bank are among the key institutional investors, showcasing confidence in ACE's financial health and growth prospects.

ACE's stock performance has been notable. As of October 2023, the share price stands at approximately ₹230 per share, reflecting a year-to-date growth of 25%.

The company has also demonstrated robust financial metrics. For the fiscal year ending March 2023, ACE reported revenues of ₹1,200 crores, with a net profit margin of 10%, resulting in a net profit of ₹120 crores.

Action Construction Equipment Limited has shown resilience in a competitive market, and its ownership structure contributes significantly to its decision-making and strategic initiatives. The ownership distribution also reflects a balanced mix between promoters and institutional investors, enhancing investor confidence in the company's long-term viability.

Action Construction Equipment Limited Mission Statement

Action Construction Equipment Limited (ACE) is a prominent player in the Indian construction equipment market. The company’s mission statement focuses on providing high-quality products, enhancing customer satisfaction, and promoting sustainable practices within the industry. ACE aims to be the most trusted brand in the construction equipment sector by delivering innovative solutions that meet the diverse needs of its customers.

As of September 2023, ACE has been at the forefront of mechanization and has established a significant market presence in both domestic and international markets. The company offers a wide range of products including cranes, excavators, and material handling equipment.

The mission statement emphasizes core values such as:

• Customer Centricity
• Innovation
• Quality Assurance
• Integrity
• Sustainability

In alignment with its mission, ACE seeks to enhance its operational efficiency and improve product offerings continuously. The following table captures key financial metrics and operational data related to ACE that reflects its commitment to its mission statement:

The mission statement also includes a commitment to sustainability, with ACE investing in eco-friendly technologies and reducing its carbon footprint. As part of its sustainability initiatives, ACE has introduced electric variants of its equipment, aligning with global environmental standards.

In addition, ACE aims to enhance its customer service experience through improved supply chain management and after-sales support, showcasing its dedication to customer satisfaction. The company also engages its workforce through training and development programs focused on innovation and quality.

Overall, Action Construction Equipment Limited’s mission statement is a reflection of its strategic objectives and its commitment to excellence in the construction equipment sector, supported by strong financial performance and operational growth metrics.

How Action Construction Equipment Limited Works

Action Construction Equipment Limited (ACE) operates primarily in the manufacturing and distribution of construction equipment and related services. The company is headquartered in Faridabad, India, and it was established in 1995. ACE is one of the leading manufacturers of construction equipment in India, specializing in cranes, excavators, and other material handling equipment.

The company offers a diverse product range which includes:

• Mobile Cranes
• Forklifts
• Excavators
• Earthmoving Equipment
• Hoists
• Material Handling Equipment

In FY 2022-2023, ACE reported a total revenue of INR 1,450 crore, demonstrating a significant growth of 24% compared to the previous fiscal year. The company's net profit for the same period stood at INR 150 crore, reflecting an increase of 30% year-on-year.

ACE operates through a network of over 120 dealers across India, ensuring wide reach and effective distribution of its products. The company has manufacturing facilities in different locations, which enhances production capacity and enables quick turnaround times for customer orders.

The following table provides an overview of ACE's key financial metrics over the past three years:

Action Construction Equipment Limited is also actively involved in research and development (R&D) to innovate and improve its product offerings. In FY 2022-2023, ACE invested approximately INR 25 crore in R&D, which accounted for about 1.7% of its total revenue.

ACE’s workforce consists of over 2,000 employees, contributing to its production, engineering, and customer service departments. The company emphasizes employee training and safety, aiming to foster a skilled workforce.

Internationally, Action Construction Equipment Limited exports its products to several countries, including the United States, the Middle East, and various Southeast Asian nations. In FY 2022-2023, exports generated approximately INR 200 crore, representing 14% of total revenue.

In terms of market share, ACE holds approximately 15% of the Indian construction equipment market, positioning itself as a formidable competitor among both multinational corporations and local firms. The company’s strategic alliances with global manufacturers enhance its product portfolio and technological edge.

Overall, Action Construction Equipment Limited continues to capitalize on the growing demand for construction equipment in India, driven by infrastructure development and government initiatives aimed at boosting the construction sector.

How Action Construction Equipment Limited Makes Money

Action Construction Equipment Limited (ACE) primarily generates revenue through the manufacturing and sale of a diverse range of construction equipment. The company’s product offerings include cranes, hoists, and other specialized machinery, catering to various sectors such as infrastructure, construction, and material handling.

In the fiscal year ending March 2023, ACE reported a revenue of approximately ₹2,100 crores, representing a growth of about 22% compared to the previous year. This growth reflects increasing demand for construction equipment driven by ongoing infrastructure projects across India.

ACE operates in several market segments, with the following break-up of revenue sources:

Additionally, ACE benefits from a robust after-sales service component, which adds to its revenue stream. The aftermarket segment is vital, contributing around 12% of total sales, driven by ongoing maintenance requirements for heavy machinery.

In terms of geographical distribution, ACE's revenue is primarily derived from the domestic market, making up approximately 85% of total sales, with exports accounting for the remaining 15%. The company's strategic emphasis on expanding its presence in international markets is evident from its growing export sales, which increased by 30% in FY 2023 compared to FY 2022.

To further enhance profitability, ACE has implemented cost-control measures, optimizing its supply chain and production processes. For instance, the company reported a gross profit margin of 23% in FY 2023, an improvement from 21% the previous year, primarily due to efficient sourcing of raw materials and production efficiencies.

Moreover, ACE has recognized the importance of technological advancements. In 2023, ACE allocated approximately ₹50 crores towards R&D to develop advanced construction solutions, which is anticipated to provide a competitive edge and bolster future sales growth.

Investment in digital transformation is also a focus area. ACE launched a digital platform for sales and service updates, resulting in improved customer engagement and satisfaction. This initiative is expected to enhance the company’s customer acquisition strategy, potentially increasing market share over the coming years.

Overall, ACE’s diversified business model, coupled with strategic investments and operational efficiencies, positions the company well to capitalize on the growing demand in the construction equipment market, ensuring sustained revenue growth.